Proteins with SH2 and SH3 domains link tyrosine kinases to intracellular pa
thways. To investigate the biological functions of a mammalian SH2/SH3 adap
tor, we have introduced a null mutation into the mouse gene for Grb2. Analy
sis of mutant embryonic stem cells, embryos, and chimeras reveals that Grb2
is required during embyrogenesis for the differentiation of endodermal cel
ls and formation of the epiblast. Grb2 acts physiologically as an adaptor,
since replacing the C terminus of the Ras activator Sos1 with the Grb2 SH2
domain yields a fusion protein that largely rescues the defects caused by t
he Grb2 mutation. Furthermore, Grb2 is rate limiting for mammary carcinomas
induced by polyomavirus middle T antigen. These data provide genetic evide
nce for a mammalian Grb2-Ras signaling pathway, mediated by SH2/SH3 domain
interactions, that has multiple functions in embryogenesis and cancer.